Automotive Supply Chain Management Solutions to Save Time and Money: Part 1

by Tim English - VP Superior Business Solutions on March 7, 2017

Automotive Supply Chain Management Solutions to Save Time and Money

Customize Your Supply Chain to Reduce Costs and Add Efficiency

Last week I shared some interesting information from the automotive forum we recently attended  Mexico. I highlighted the lack of critical supply chain resources to support the automotive industry in a booming worldwide marketplace. Industry manufacturers and many of their OEM and Tier 1 suppliers were candid about their need for automotive supply chain management solutions. This may have surprised many in attendance, but as far as we were concerned, it was preaching to the proverbial choir.

We’ve long known how the automotive industry can benefit from supply chain management solutions. Jon Cummings, one of our Superior Business Solutions’ Commodity Management Specialists, addressed the topic in this post.  Jon has toured many Tier 1 auto suppliers with multiple locations across the country. He consequently discovered one persistent practice that was costing many companies significant time and money. They were ordering most or all of their printed forms, labels and tags on a plant-by-plant basis.

Without Automotive Manufacturing Supply Chain Management, Problems Add Up

There are several negative results of using this plant-by-plant print purchasing approach.

  1. Frequent out-of-stock problems.
  2. Inconsistencies in form design from one location to another.
  3. Lost opportunity for savings from consolidated ordering.
  4. Increased inventory requirements due to seeking “bulk” purchasing discounts.
  5. Need to manage numerous vendors.
  6. Wasted inventory when bulk buying leads to outdated stock.

But there is a plan that will help any company in the automotive manufacturing industry (and most other industries, for that matter) achieve greater efficiency, reduce costs and save employee time.

Use a 3-step Process Driven to Achieve Results

As noted,  print projects handled in different ways across many  locations can cause issues. And resolving them can be challenging. But I’d like to recommend a proven three-step process can help you focus your thinking and identify your needs. As a result of that analysis, you can then put a plan in place to ensure that your print needs are met at minimum cost, maximum efficiency and unwavering reliability.

  1. First, perform a full audit of all your consumables, by plant, to get an clear understanding of your exact needs Determine exactly what forms, labels and tags are needed in each location, in what quantities, and on what schedule.
  1. Evaluate each item, and look for ways to reduce costs or standardize the item across your multiple locations.
  1. Finally, work with plant and office personnel and establish a Plan for Every Part (PFEP) process by identifying the need for each item.

When Superior Business Solutions works with you in this process, we assign each part to a category in a carefully-considered availability hierarchy. Critical Parts are stored securely at the client location to ensure ready access. Supplier Parts are stored at one of our locations and supplied  as needed, quickly and efficiently. Non-Critical Parts require no special treatment, as the audit determines that normal manufacturing lead times are sufficient to ensure that all needs are met.

Choose Superior for Your Automotive Supply Chain Management Solutions

In my next post on Thursday, I’ll talk about the three major benefits our customers are enjoying after employing the process above. But why wait? Chances are excellent we can make your business more efficient starting today.

We understand the automotive manufacturing industry; our client list includes General Motors and Honda, plus OEM and Tier 1 auto suppliers. We also know our business, as our ISO certification shows. Want more proof? Consider the 2017 Best of Print and Digital Award we earned through the rankings of our customers.

To find out how your company could benefit from our print solutions for the automotive manufacturing industry, contact us today and ask for a supply chain management review or reach out directly to one of our sales reps.

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